Which of the following is not an assumption for the basic EOQ model?
A)Only an integer number of orders can be made each year.
B)Quantity discounts are not possible.
C)Inventory receipt is instantaneous (all at once).
D)With orders placed at the correct time,there will be no shortages.
E)Demand is known.

Question

Quizplus · Accepted Answer

The basic EOQ model does not assume that only an integer number of orders can be made each year. It assumes continuous ordering and does not restrict the number of orders to integers.

Which of the Following Is Not an Assumption for the Basic